New Delhi: Textiles Minister Giriraj Singh has invited Japanese brand Uniqlo to invest in PM’s Mega Integrated Textile Region and Apparel (PM MITRA) Parks as India targets a textiles market size of 350 billion to 100 billion dollars in exports by 2030, according to an official statement issued on Tuesday. The minister held a meeting here with senior officials from Uniqlo, reaffirming the shared commitment to strengthening India’s textile sector. This engagement follows Uniqlo’s earlier interaction with the Prime Minister, highlighting their keen interest in collaborating with India’s textile industry to enhance cotton production capabilities, productivity, and quality. With 15 stores across the country and a retail revenue of Rs 814 crore as of March 31, 2024, Uniqlo has demonstrated a robust growth rate of 30 per cent, contributing substantially to retail and textile ecosystem in India. Their operations, including collaboration with 18 swing factories and 6 fabric mills sourced from 9 vendors, underline their commitment to quality and innovation in textiles Uniqlo has expressed a keen interest in advancing cotton production capabilities, productivity, and quality within India. As the world’s largest cotton producer, cultivating over 11.9 million hectares, India provides an ideal landscape for such initiatives. India is already utilizing high density quality seeds in Akola where productivity levels are up to 1,500 kg/hectare. The company’s pilot project is also working on similar lines where the productivity and quality levels are yielding up to 1,000 kg/hectare. The Ministry is committed to supporting Uniqlo’s request for land to scale this initiative, reflecting a shared vision of making India a global hub for high-quality cotton sourcing. Uniqlo’s participation in the upcoming “Bharat Tex” Global Textile Expo in February will further underscore the shared commitment to fostering innovation, sustainability, and traceability in the textile sector. With global attention focused on sustainable and traceable practices, the Ministry has encouraged Uniqlo to extend its research and development efforts into new natural fibres, including milkweed fibre aligning with India’s own initiatives in this critical area. The Ministry remains confident that this partnership will bolster India’s end-to-end textile value chain, strengthen the women led economy, and elevate India’s position as a global textile leader, the statement added.
Source: PIB
Synopsis The Comptroller and Auditor General (CAG) has criticized the ineffectiveness of the Denied Entity List (DEL) mechanism under the Export Promotion Capital Goods (EPCG) scheme. The CAG highlighted the lack of verication of submitted documents and the issuance of authorizations without ensuring compliance with previous obligations. The Comptroller and Auditor General (CAG) Tuesday agged the effectiveness of the Denied Entity List (DEL) mechanism aimed to make the exporters strictly comply with the conditions of authorizations of the Export Promotion Capital Goods (EPCG) scheme and said that authorizations need to be reviewed as the online system of the Directorate General of Foreign Trade (DGFT) does not check the veracity of the documents submitted.
Source: Economic Times
Synopsis President-elect Donald Trump emphasized his commitment to imposing reciprocal tariffs on countries like India and Brazil that levy high tariffs on US goods. He stated his administration would match tariffs imposed by other nations, ensuring fair trade practices. Trump's Commerce Secretary nominee, Howard Lutnick, echoed this sentiment, highlighting reciprocity as a key principle for the incoming administration. US President-elect Donald Trump has reiterated his intention to impose reciprocal taris in retaliation for the "high tari" imposed by New Delhi on import of certain American products. "Reciprocal. If they tax us, we tax them the same amount. They tax us. We tax them. And they tax us. Almost in all cases, they're taxing us, and we haven't been taxing them," Trump told reporters on Monday. He made the remarks while responding to a question on a potential trade agreement with China. Trump said India and Brazil were among countries that impose high taris on certain US products. "The word reciprocal is important because if somebody charges us - India, we don't have to talk about our own - if India charges us 100 per cent, do we charge them nothing for the same? You know, they send in a bicycle and we send them a bicycle. They charge us 100 and 200. India charges a lot. Brazil charges a lot. If they want to charge us, that's ne, but we're going to charge them the same thing," Trump said at a news conference at Mar-a-Lago. Responding to a question, his Commerce Secretary pick Howard Lutnick said "reciprocity" is something that is going to be a key topic for the Trump administration. "How you treat us is how you should expect to be treated," he said.
Source: Economic Times
The dollar has been reaping the benefits of Donald Trump's victory in the US presidential elections, which sent the currency to its highest level since November 26. Indian firms are opting for cross-currency swaps to convert part of their debt into the euro or Japanese yen in order to trim borrowing costs, said bankers. They anticipate a sharper fall in interest rates of these two currencies instead of the dollar. While some are converting their rupee debt into the euro or yen, others are converting their dollar debt. With the easing of rates by the European Central Bank, the borrowing cost is expected to be reduced by 150-200 basis points over a few months, said bankers. Cross-currency swaps are derivative structures that allow companies to convert loan principal, interest repayments, or both, from one currency to another, helping manage interest rates and forex risk. “People are moving to yen as its rate of interest is closer to zero. Also, the pricing of loans is better,” said a head of treasury at a state-owned bank. Moreover, expectations of dollar strengthening further have also prompted Indian firms to opt for cross-currency pairs other than USD-INR. The dollar strengthened 0.16% to 0.894 against the Swiss franc, hovering near its highest level since July. Against the yen, the dollar strengthened 0.31% to 154.12, after rising as high as 154.48 for the first time since November 26. “Euro interest rates will go down due to the slowdown in the Euro Zone, while dollar interest rates may not fall significantly, particularly if Trump imposes tariffs. So, people are switching to these swaps,” said Anil Kumar Bhansali, head of treasury at Finrex Treasury.
ECB president Christine Lagarde hinted at a bigger 50 basis point rate cut to buffer the euro zone economy. On December 12, the ECB cut interest rates for the fourth time this year and kept the door open to more easing as the economy is dragged down by political instability in the region and the threat of a fresh US trade war.
As uncertainty looms in both domestic and global markets regarding the trajectory of the American greenback going forward, the dollar hedging cost has increased for Indian corporates. Currency hedging is an attempt to reduce the effects of changes in the exchange rate on the value of investments. The dollar has been reaping the benefits of Donald Trump’s victory in the US presidential elections, which sent the currency to its highest level since November 26. With the dollar scaling at an all-time high, the euro has fallen to a one-year low, and the rupee has been touching fresh lows. Usually, when the dollar gains momentum, other currencies essentially depreciate. Consequently, countries that have dollar-denominated debt become less creditworthy as it makes it harder for them to purchase the US currency, said bankers. “Cross-currency swaps have increased over a period of time. From Indian corporates’ point of view, the dollar hedging cost has increased in recent times; therefore, they are preferring other currencies,” said a trader with a foreign bank.
Source: Financial Express
The scheme, announced during the Budget, provides for dispute resolution in respect of pending income tax litigation. The Central Board of Direct Taxes (CBDT) on Tuesday published a fresh set of FAQs on the Direct Tax Vivad se Vishwas scheme in response to additional queries received by it.The fresh FAQs mainly address the ambiguities around eligibility criteria and computation of amount payable under the scheme. The scheme, announced during the Budget, provides for dispute resolution in respect of pending income tax litigation. The objective of the scheme is to reduce pending tax litigation, generate timely revenue for the government and benefit taxpayers by providing them peace of mind, certainty and savings on account of time and resources that would otherwise be spent on the long-drawn and vexatious litigation process, the CBDT said in a notification. The scheme is applicable only in relation to appeals filed on or before July 22, 2024 which led to many doubts among taxpayers such as whether they will be eligible if appeal time limit expired before the said date, but appeal was filed afterwards. “These are the practical ambiguities faced by several taxpayers considering the multifaceted tax appeal procedures and the clarifying FAQs are a welcome move,” said Manish Garg, lead, transfer pricing and litigation, AKM Global. It has also been clarified that to be eligible for payment of lower rate of disputed amount, the declaration has to be filed on or before December 31, 2024, and not the payment before that date. The payment of the disputed amount is required to be made within 15 days of the date of receipt of certificate issued by the tax officer. Another important clarification which was missing in the first set of FAQs and has been included now is related to the applicability of secondary adjustment under transfer pricing. It has been clarified that the secondary adjustment will be applicable in such cases unless the case pertains to Assessment Year 2016-17 or earlier years when the provisions of secondary adjustment were not in place. “Overall, the FAQs have been issued with the aim of creating better awareness and understanding with respect to the provisions of the scheme. This will help the taxpayers to make a considered decision,” said Sachin Garg, partner, Nangia & Co LLP.
Source: Financial Express
The American Association of Textile Chemists & Colourists, or AATCC, recently inked a Memorandum of Understanding (MoU) with The Textile Association (India) (TAI) as part of the Association’s global expansion.
The MoU aims to increase communication between the two organisations, prevent duplication of work when feasible, raise awareness of AATCC standards in India, engage in educational activities along the fibre-to-fashion chain, and use the resources of AATCC and The Textile Association (India) to support each other’s efforts to benefit individuals and businesses in the Indian textile industry.
India’s textile sector is one that is strong and expanding. The Memorandum of Understanding (MoU) with TAI represents a milestone in AATCC’s mission to promote global connections among textile, chemistry, and colour science professionals, the organization’s president, Christina Rapa, added stating that AATCC looks forward to providing the Indian market with comprehensive training programs, high-quality testing standards, and beneficial networking opportunities in the years to come.
For the benefit of members of The Textile Association (India) as well as other people and businesses in the Indian textile sector, the organisations committed in the MoU to developing collaborative educational and training initiatives, including conferences.
With more than 26,000 members, the Textile body (India) (TAI) is the biggest trade body in the textile industry.
This partnership will facilitate the planning of international conferences, webinars, seminars, and cooperative educational initiatives, according to Tulsi L. Patel, President of TAI, who added that individuals and company members can gain by increasing their market prospects and knowledge.
Members of either organisation are also eligible for a 30 per cent membership discount in the other organisation under the terms of the MoU. In addition to these actions, the MoU states that AATCC will provide corporate and individual TAI members with a unique introductory pricing.
The Association has designated AATCC Chapin Award winner Seshadri Ramkumar as AATCC Ambassador to India in addition to the MoU as part of AATCC’s outreach to India. He has the authority to represent the Association in negotiations with Indian businesses and associations. Ramkumar is also a member of The Textile Association (India) and an Honorary Fellow. Ramkumar teaches advanced materials at Texas Tech University, located in Lubbock, Texas, in the United States.
Source: Apparel Resource
RIYADH — The General Authority of Foreign Trade (GAFT) has announced the imposition of definitive anti-dumping measures on imports of PVC-coated textiles and fabrics originating from China and South Korea.
Dr. Majed Al-Qasabi, minister of commerce and chairman of GAFT, issued the decision, which was published in the official gazette on December 16, 2024. The measures will take effect for a period of five years starting from December 17, 2024.
The decision mandates the Zakat, Tax, and Customs Authority to enforce and collect anti-dumping duties on the specified imports, with rates ranging from 25.56% to 51%, based on a detailed table included in the official announcement.
The measures are part of Saudi Arabia’s efforts to protect its domestic industry from unfair trade practices under the **Law of Trade Remedies in International Trade**.
The anti-dumping measures follow an investigation initiated on November 30, 2023, after a complaint was lodged by the domestic industry. The investigation, conducted in accordance with the Law of Trade Remedies in International Trade and its Executive Regulations, concluded with findings that justified the imposition of definitive measures to address unfair trade practices affecting the Saudi market.
Source: Saudi Gazette
ISLAMABAD: The textile and clothing exports increased 10.51 per cent in the first five months of the current fiscal year, Pakistan Bureau of Statistics data showed on Tuesday. After contracting 3.09pc in the first month of 2024-25 in July, the textile exports maintained a bullish trend with robust growth of 13pc in August, 17.92pc in September, 13.11pc in October, and 10.81pc in November, respectively. Many experts believe it would take a lot of struggle for the sector to compete with regional rivals due to the implementation of harsh taxation measures in the current fiscal year. However, the disruption in supply from Bangladesh has also boosted demand for Pakistani garments. Textile and clothing exports have been static for the last two years despite having a $25 billion installed capacity due to structural issues, according to textile players. In absolute terms, the textile and clothing exports rose 10.61pc to $7.61bn in July-November FY25 from $6.88bn in the corresponding period last year. The government has introduced various measures, including increasing the tax rate on exporters’ personal income in 2024-25. The PBS data showed exports of readymade garments rose 23.10pc in value and 13.61pc in quantity during 5MFY25, while knitwear rose 18.42pc in value and 8.87pc in quantity. Bedwear grew 15.05pc in value and 14.86pc in quantity.Towel exports rose 7.08pc in value and 6.90pc in quantity 5MFY25, whereas cotton cloth went up 4.18pc in value and contracted 2.09pc in quantity, respectively. Yarn exports dipped 38.70pc in 5MFY25. The exports of made-up articles, excluding towels, increased by 11.61pc, and tents, canvas and tarpaulin went up by 9.63pc in 5MFY25. No export of raw cotton was recorded during the period under review. The import of synthetic fibre shrank 18.20pc, and the arrival of synthetic and artificial silk yarn increased by 4.30pc. However, other textile items’ import increased by 68.73pc the period under review. The import of raw cotton surged 104.33pc from a year ago. However, the import of second-hand clothes grew 20.22pc. In July-November FY25, the country’s total exports increased by 12.82pc to $13.72bn, up from $12.16bn in the same months last year.
Source: Dawn.com
Synopsis The Biden administration is finalizing a national security memorandum to update US export control policies, easing space sector collaboration with India. This move aims to reduce barriers for US companies partnering with Indian counterparts, fostering joint space exploration and technological advancements, including potential Indian astronaut participation in future US missions. Washington: The outgoing Biden administration is in the process of finalising a national security memorandum that will update America's export control policies under the Missile Technology Control Regime (MTCR), a move that is likely to facilitate more cooperation between India and US companies in the space sector, the White House said Tuesday. The goal of updating export control policies under the MTCR is to be able to advance commercial space cooperation even further with close partners like India, Principal Deputy National Security Advisor Jon Finer told reporters during a conference call here. "We are continuing to take steps to further knock down barriers to private sector cooperation, and importantly, we are in the process of finalising national security memorandum that will update our own export control policies under the Missile Technology Control Regime (MTCR)," Finer said. Finer, Deputy Secretary of State Kurt Campbell and Indian Ambassador to the US Vinay Kwatra visited Houston on Tuesday and met the astronauts of the Indian Space Research Organization (ISRO) who are training at NASA's Johnson Space Center to execute a joint effort of the International Space Station next year Created in 1987 by G-7 countries, MTCR is an informal political understanding among 35 member states that seeks to limit the proliferation of missiles and missile technology. India joined MTCR in 2016. In practical terms, this would mean that US-based companies would face lower barriers in partnering with Indian companies," Finer said. India and the US, he said, are not only making significant advancements in their national space programmes but are also increasingly working together to build a cooperative partnership in space, he said. "Our task as governments is to create a platform for industries to innovate faster together and at scale," he said. This goal was at the heart of the Initiative on Critical and Emerging Technologies (ICET) that the Biden administration launched in January 2023. "As part of our ICET initiative, we committed to expand commercial space collaboration," Finer said. Chirag Parikh, Deputy Assistant to the President and Executive Secretary, National Space Council, said the US-India space cooperation has had a long history and is rooted in the civil space environment, particularly on earth science and space science and exploration. "As we continue to see how India has grown its space sector over just the past several years, they're hitting a number of groundbreaking milestones. Notably, recently, they landed a probe on the Lunar South Pole region called Chandrayan-3, and where we've also been with NASA, been able to partner with them to be able to provide some payload for those elements," he said. When Prime Minister Narendra Modi and President Joe Biden met in June 2023 and discussed collaboration around human space light and joint space exploration, which also included commercial partnerships. "So, our partnership went from civil and scientific exploration to human to now commercial cooperation. And as we learned here today in Houston, the number of opportunities that us, industry and industry, Indian industry have to cooperate in space continues to grow," he said. "We need to reduce the barriers to be able to enable that type of cooperation further. Early next year, we will have a high-resolution synthetic aperture radar imagery satellite launched out of India, jointly developed through both NASA and the Indian Space Research Organisation to be able to map the entire Earth every 12 days, to be able to combat the climate crisis, "Our cooperation will move into other areas, potentially even in the world of national security space, as we work together to be able to combat some of the types of threats that we see manifesting around the world. So, the opportunity space between India and the United States literally has no bounds, no limits, and can reach the edge of the universe," Parikh said. A senior administration official told reporters that one of the goals is to include Indian astronauts in America's most ambitious missions. "What we've heard from Indian interlocutors is their desire to explore potential uses of space in a variety of pursuits, including with respect to some manufacturing in pharmaceuticals and other things that we are now actively exploring, but also just in space exploration," the official said. "The Indian astronauts that we shared lunch with today were extraordinarily excited about the opportunities to partner with American and other partners in space, to explore the moon and beyond. Our expectation is that India will be a full partner in everything that we seek to do, increasingly, in every element of space exploration," the official said. A second senior administration official said, "As part of the Artemis programme is not just the human space exploration of it, but it's actually the contribution of technologies and capabilities. India already has landed a lander on the moon, and the science and data that's gained from that will help enable human spaceflight in the future," said the official. "Similarly, with the astronauts that we've met today at Johnson Space Center, India has ambition to develop its own commercial or its own human spaceflight capabilities. So the United States and India are partnering to be able to develop the training for them to have in India so that they can develop an Indian astronaut core as well," the official said.
Source: Economic Times
